INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision F - Substantiation of certain expenses of years of income up to and including 1993-94  

SECTION 82KZBB   RELIEF FROM CERTAIN SUBSTANTIATION REQUIREMENTS WHERE TAXPAYER HAD A REASONABLE EXPECTATION THAT SUBSTANTIATION WOULD NOT BE REQUIRED  

82KZBB(1)   [Reasonable failure to meet substantiation requirements]  

Where:

(a) any of the following subparagraphs applies in relation to an expense incurred by a taxpayer in a year of income:

(i) documentary evidence of the expense was not obtained by, or on behalf of, the taxpayer;

(ii) the taxpayer did not make, as mentioned in subsection 82KZ(2) , an entry in a travel diary in relation to the expense;

(iii) the taxpayer did not retain, for the retention period:

(A) documentary evidence of the expense; or

(B) a travel diary relating to the travel to which the expense relates;

(b) the failure to obtain or retain the documentary evidence, to make the entry, or to retain the travel diary, occurred only because:

(i) if the expense is a car expense - the taxpayer, at the time the expense was incurred, had a reasonable expectation that he or she would be entitled to claim a deduction under section 82KX in relation to the car to which the expense relates in relation to the year of income;

(ii) if the expense is a relevant expense within the meaning of section 82KZB - the taxpayer, at the time the expense was incurred, had a reasonable expectation that the total amount that would be allowable as deductions under this Act in respect of relevant expenses, within the meaning of section 82KZB , incurred by the taxpayer during the year of income would not exceed $300 or such higher amount as is prescribed for the purposes of subsection 82KZB(2) ; or

(iii) if the expense is a transport expense - the taxpayer, at the time the expense was incurred, had a reasonable expectation that subsection 82KZBA(1) would apply in relation to the whole or a part of the expense;

(c) all of the following conditions are satisfied:

(i) a special circumstance occurred:

(A) after the expense was incurred; and

(B) during the year of income;

(ii) at the time the expense was incurred, the taxpayer did not know, and could not reasonably have been expected to have known, that the special circumstance would occur;

(iii) it is reasonable to assume that, if the special circumstance had not occurred:

(A) if subparagraph (b)(i) applies - the taxpayer would have been entitled to claim a deduction under section 82KX as mentioned in that subparagraph;

(B) if subparagraph (b)(ii) applies - the total amount that would be allowable as deductions under this Act in respect of relevant expenses, within the meaning of section 82KZB , incurred by the taxpayer during the year of income would not have exceeded $300 or such higher amount as is prescribed for the purposes of subsection 82KZB(2) ; or

(C) if subparagraph (b)(iii) applies - subsection 82KZBA(1) would have applied in relation to the whole or a part of the expense referred to in that subparagraph;

(d) if subparagraph (b)(i) applies - the taxpayer is not entitled to claim a deduction under section 82KX in relation to the car to which the expense relates in relation to the year of income; and

(e) the Commissioner is satisfied that, because of the circumstances referred to in paragraphs (b) and (c), it would be unreasonable to expect the taxpayer:

(i) to have obtained or retained documentary evidence in relation to the expense; or

(ii) to have had made an entry in a travel diary in relation to the expense or to have retained the travel diary relating to the travel to which the expense relates;

as the case may be;

the following provisions have effect:

(f) if the expense is a car expense - section 82KUA and paragraphs 82KW(2)(b) and (ba) and 82KZA(1)(aa) and (a) and (3)(ba), (c) and (d) do not apply, and shall be deemed never to have applied, in relation to the expense;

(g) if the expense is an expense other than a car expense - section 82KZ and paragraphs 82KZA(1)(a), (aa) and (c) and (3)(ba), (c), (d) and (f) do not apply, and shall be deemed never to have applied, in relation to the expense.

82KZBB(2)   [Reasonable failure to maintain odometer records]  

For the purposes of this Subdivision, where:

(a) odometer records maintained by or on behalf of a taxpayer in relation to a motor vehicle in relation to a period during a year of income would, apart from this subsection, be incomplete because of a failure to enter particulars of the odometer reading at the commencement of the period or, if the first use of the motor vehicle in the course of producing assessable income of the taxpayer occurred during that period, at the commencement of that use;

(b) the failure occurred only because:

(i) the taxpayer, at the commencement of that period or use, had a reasonable expectation that the taxpayer would be entitled to claim a deduction under section 82KX in relation to the motor vehicle in relation to the year of income;

(ii) the taxpayer, at the commencement of that period or use, had a reasonable expectation that the total amount that would be allowable as deductions under this Act in respect of relevant expenses, within the meaning of section 82KZB , incurred by the taxpayer during the year of income would not exceed $300 or such higher amount as is prescribed for the purposes of subsection 82KZB(2) ; or

(iii) the taxpayer, at the commencement of that period or use, had a reasonable expectation that subsection 82KZBA(1) would apply in relation to the whole or a part of all of the car expenses incurred, in gaining or producing assessable income of the taxpayer, in relation to the motor vehicle after the commencement of that period or use and during the year of income;

(c) all of the following conditions are satisfied:

(i) a special circumstance occurred:

(A) after the commencement of that period or use; and

(B) during the year of income;

(ii) at the time the expense was incurred, the taxpayer did not know, and could not reasonably have been expected to have known, that the special circumstance would occur;

(iii) it is reasonable to assume that, if the special circumstance had not occurred:

(A) if subparagraph (b)(i) applies - the taxpayer would have been entitled to claim a deduction under section 82KX as mentioned in that subparagraph;

(B) if subparagraph (b)(ii) applies - the total amount that would be allowable as deductions under this Act in respect of relevant expenses, within the meaning of section 82KZB , incurred by the taxpayer during the year of income would not have exceeded $300 or such higher amount as is prescribed for the purposes of subsection 82KZB(2) ; or

(C) if subparagraph (b)(iii) applies - subsection 82KZBA(1) would have applied as mentioned in that subparagraph;

(d) if subparagraph (b)(i) applies - the taxpayer is not entitled to claim a deduction under section 82KX in relation to the motor vehicle in relation to the year of income;

(e) the Commissioner is satisfied that, because of the circumstances referred to in paragraphs (b) and (c), it would be unreasonable to expect the taxpayer to have recorded the odometer reading at the commencement of that period or use; and

(f) before the date of lodgment of the taxpayer's return for the year of income, or within such further time as the Commissioner allows, the taxpayer sets out in the odometer records:

(i) a reasonable estimate of the odometer reading; and

(ii) a declaration signed by the taxpayer that, to the best of his or her knowledge and belief, the estimate is reasonable;

the following provisions have effect:

(g) the odometer records shall be deemed to be, and to have been, at all times after the commencement of that period, complete odometer records maintained by or on behalf of the taxpayer in relation to the motor vehicle for that period;

(h) the retention period in relation to the odometer records shall be deemed to commence at the time the first entry was made in the odometer records.

82KZBB(3)   [Interpretation]  

In this section, a reference to the time a taxpayer incurred an expense, being an expense constituted by depreciation in respect of property is, notwithstanding subsection 82KT(3) , a reference to the time when the taxpayer acquired the property.